Oracle stock price target raised to $400 from $350 at Mizuho on AI growth

Investing.com - Mizuho has raised its price target on Oracle (NYSE:ORCL) to $400 from $350 while maintaining an Outperform rating on the stock. According to InvestingPro data, Oracle shares have surged 144% in the past six months, with analyst targets ranging from $175 to $415.

The upgrade follows Oracle’s announcement of new fiscal year 2030 targets of $225 billion in revenue and $21 earnings per share, which exceed current consensus estimates of $198 billion and $18.50, respectively. The company, currently valued at $892.3 billion, has demonstrated strong momentum with 9.67% revenue growth in the last twelve months. InvestingPro analysis indicates Oracle is trading above its Fair Value, with 16 additional ProTips available for subscribers.

Mizuho noted that Oracle recently increased its Oracle Cloud Infrastructure (OCI) revenue forecast and added $65 billion of remaining performance obligations tied to four customers, demonstrating revenue diversification beyond its previously announced OpenAI partnership.

The firm highlighted that Oracle management reported stronger-than-expected AI gross margins, which should address investor concerns about profitability in this growing segment of the business.

Mizuho expressed increased confidence in Oracle’s growth trajectory, citing four key drivers: AI infrastructure monetization, expanding multi-cloud partnerships, accelerating Database 26ai migrations, and growing Fusion AI capabilities.

In other recent news, Oracle has made significant announcements at its AI World event, drawing attention from various analyst firms. Oracle management has increased its fiscal year 2030 Oracle Cloud Infrastructure (OCI) revenue target to $166 billion, up by $22 billion from previous forecasts. Wolfe Research highlighted Oracle’s upward revision of its top-line forecast, projecting a $43 billion higher cumulative OCI revenue from FY26-FY30. The company also shared ambitious earnings projections, including a 28% compound annual growth rate (CAGR) for earnings per share (EPS) from FY25-FY30, aiming for a $21 EPS target by FY30.

Stifel reiterated its Buy rating on Oracle stock with a $350 price target, while Evercore ISI raised its target to $385, maintaining an Outperform rating. Barclays also increased its price target to $400, citing strong AI momentum and significant contract value in its infrastructure-as-a-service business. Citizens reiterated a Market Outperform rating with a $342 target, noting Oracle’s position as a key player for AI workloads from major companies. These developments reflect Oracle’s strategic focus on cloud infrastructure and AI, capturing the interest of analysts and investors alike.

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